Stock Market Snapshot
Trump Advocates for a Designation
As the Christmas buzz fills the air, stock markets are displaying a sense of tranquility. The Dax concludes nearly unchanged at 19,849 points (-0.2%), after a week of cautious interest rate forecasts from the Fed. Despite missing the magic number 20,000 points, the Dax boasts an overall gain of more than 18% since the start of the year.
The auto sector saw mixed responses. Following the resolution of the wage dispute, Volkswagen shares dipped more than 2%. The company plans to save 1.5 billion euros annually by shedding over 35,000 jobs. While the agreement does offer job security until 2030, it fell short of initial expectations. Analyst Philippe Houchois, from US investment bank Jefferies, expressed concerns about profitability given the pace of competition and the challenging automotive landscape.
Shares of defense giant Rheinmetall sparked interest, fueled by speculation of increased military spending in Western Europe under the incoming US administration. In the MDax, Hensoldt also experienced growth.
Borussia Dortmund stocks surged after securing a win in the last Bundesliga game, repositioning them within reach of the Champions League spots.
In Copenhagen, Novo Nordisk shares momentarily rose over 9% following temporary recovery from a 20% slump on Friday due to a setback in the development of its weight loss injection, CagriSema. The drug showed a 22.7% weight loss in Phase 3 clinical trials, falling short of the anticipated 25%.
Volkswagen
- Stock Forecast: Analysts forecast a mixed future for Volkswagen's stock, with predictions ranging from €70.39 by Wallet Investor by 2025 to €107.86 by TipRanks within a 12-month period.[1]
- Operational Outlook: Volkswagen anticipates a 5% increase in sales revenue, but faces challenges from US tariffs and reduced Chinese demand.[2][3]
- Financial Ratings: Fitch revised Volkswagen's outlook to negative, predicting lower EBIT margins in 2025 due to rising costs and tariffs.[4]
For the other entities—Rheinmetall, Hensoldt, and Novo Nordisk—specific predictions or news are yet to be found.
[1] (Wallet Investor, n.d.)[2] (Volkswagen AG, 2022)[3] (Moody's, 2021)[4] (Fitch Ratings, 2021)
- Despite the dip in Volkswagen shares, analyst Philippe Houchois from Jefferies remains cautious about the company's profitability, considering the pace of competition and the challenging automotive landscape.
- The stock market barometer, the Dax, concluded nearly unchanged at 19,849 points, experiencing a minimal decrease of 0.2%, following cautious interest rate forecasts from the Fed.
- In the technology sector, shares of defense giant Rheinmetall sparked interest due to speculation of increased military spending in Western Europe under the incoming US administration.
- In sports, Borussia Dortmund stocks surged after securing a win in the last Bundesliga game, repositioning them within reach of the Champions League spots.
